MP Materials Corp. (MP) Gains As Market Dips: What You Should Know
In the latest trading session, MP Materials Corp. (MP) closed at $24.15, marking a +1.68% move from the previous day. This change outpaced the S&P 500's 0.02% loss on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.12%.
Coming into today, shares of the company had gained 8.3% in the past month. In that same time, the Basic Materials sector gained 9.06%, while the S&P 500 gained 5.14%.
MP Materials Corp. will be looking to display strength as it nears its next earnings release, which is expected to be August 3, 2023. On that day, MP Materials Corp. is projected to report earnings of $0.07 per share, which would represent a year-over-year decline of 83.72%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $60.44 million, down 57.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $331.54 million, which would represent changes of -67.26% and -37.15%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MP Materials Corp.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 7.38% lower within the past month. MP Materials Corp. currently has a Zacks Rank of #4 (Sell).
Investors should also note MP Materials Corp.'s current valuation metrics, including its Forward P/E ratio of 43.18. This represents a premium compared to its industry's average Forward P/E of 10.48.
Meanwhile, MP's PEG ratio is currently 2.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Mining - Miscellaneous was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Mining - Miscellaneous industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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MP Materials Corp. (MP) : Free Stock Analysis Report
